RBI October meeting minutes underline cautious tone, likely to cut rate again in December

The Indian central bank, Reserve Bank of India, released its October Monetary Policy Committee meeting minutes that highlighted a cautious tone with all the members acknowledging the higher-than-expected acceleration in inflation in recent months, noted ANZ in a research report.

Meanwhile, most members underlined uncertainty over growth, that is whether the current slowdown is transitory or durable. A negative output gap has now continued for four quarters, hence raising questions about the temporary nature of the deceleration.

According to ANZ, the Reserve Bank of India is still likely to lower the policy repo rate by 25 basis points in December.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest